Cigar Weekly

Miami, FL, Jan 2003, - The history of the Perdomo family's cigar making tradition recounts three generations of Cuban artisans and their quest for survival, freedom and their fervent dream of producing the finest cigars in the world. The communist revolution of 1959 and the considerable struggles that followed would not deter them from their tenacious path. Silvio Perdomo, the family patriarch who had worked as production manager for several of the most prestigious cigar factories in Cuba, was imprisoned for "anti-communist" activities after Castro came to power in 1959. Silvio's son, Nick Perdomo, Sr., who also served as a manager for a number of top Cuban cigar producers, was shot during an ambush by Castro insurgents and was lucky to flee the country. Enduring years of political strife, hardship and brutal oppression - culminating with the eventual discovery of freedom and survival in a new world - is how the seeds of the Perdomo cigar making tradition have taken root and flourished.

The Perdomo cigar making tradition was restarted in 1991 when Tabacalera Perdomo, S.A. was started by Nick Perdomo, Jr. his father Nick, Sr., mother Mary, grandfather Silvio (who was finally released from prison and smuggled out of Cuba in 1974 by Nick, Sr.) and two Cuban master rollers. His sales and marketing staff then consisted of himself, his wife Janine and brother-in-law Michael Argenti.

Today, virtually all of Perdomo's cigars are produced at their 88,000-square-foot factory in the Nicaraguan tobacco town of Esteli, where over 500 workers now turn out over 10 brands of Perdomo product in addition to private brands made for the industry's most prominent and popular cigar companies. The company employs another 200 people that work in the adjacent box factory and tobacco warehouse. Tabacalera Perdomo also grows their own tobaccos from farms it either directly owns or co-ops with - among them three farms in the Jalapa Valley, two in Condega and one in Esteli. The company has domestic offices at a 16,500 square foot facility in Miami, Fla. that serves as its headquarters and worldwide distribution center. The company is the one of the largest manufacturer of premium cigars made in Central America.

Here at his Miami headquarters in an office he shares with his brother-in-law and executive vice president Michael Argenti, Mr. Perdomo agreed to take time out of his busy schedule to answer a few questions for Cigar Weekly Magazine. He also graciously agreed to answer questions from our readers.

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CigarWeekly: What changes have you seen in the cigar industry since our last interview in 2000?

Nick Perdomo: It’s strange. The year 2000 seems so long ago, doesn’t it? One of the biggest changes I’ve seen since then - and I’m happy to see it - is the overall quality of cigars being produced. I don’t think there’s ever been a time in our country when cigar enthusiasts had such a diverse choice of high quality cigars. And speaking for Tabacalera Perdomo, we’ve continued to experience a fast-paced yet controlled amount of growth. The demand for our premium cigar lines has never been greater. My family has a motto, “Quality always brings quantity.” And even though we’ve grown over the years, it’s been a growth that we’ve been able to control. I’m very proud of that and the discipline we’ve shown that way as a manufacturer. I’m also very proud of the new cigars we’ve introduced since that time. Of course, I look at all of my cigars like they are members of my family. I’m proud of all of them. But I’m especially gratified by how our customer’s have responded to our cigar lines since that time.

CW: What new brands have you developed in the last two years?

NP: We've developed six new brands, not including the private label work we've done, so we've been very busy on that front. I am very proud of the introduction of our flagship cigar, the Perdomo Estate Seleccion. It's available in either a Cuban seed Natural or Maduro wrapper hand selected by my dad and I that we grow in the Jalapa Valley. It's a blend of exceptional tobacco profiles that was my grandfather's favorite. We had wanted to produce this blend for many years but ultimately we decided we couldn't do it until we could control the growing process 100% and age it to our own strict specifications. Now that we've been able to control those processes and aging requirements for the last six years, we felt it was finally time to introduce this incredible blend to the public. And even though my grandfather was no longer with us when we were finally able to produce Perdomo Estate Seleccion, I know he would have been extremely grateful and proud of the reception it's received. I know my dad and I are.

We've also introduced the Cuban Parejo, which at this time is our hottest selling cigar. I really enjoy blending and smoking cigars with large ring gauges because it allows me to use a bolder and more diverse balance of tobaccos that cannot be done in smaller gauge cigars. We've also launched The Cigar, the cigar pequeno, CasaMontez and Perdomo Reserve "Moments" and our customers have responded to them with tremendous enthusiasm. And what can I say about the new Perdomo Fresco? This cigar is made exclusively by a group of cigar prodigies at our factory directly supervised by my father. They call themselves Las Olas and they are the new wave, the next generation of cigar makers. And I think they're a brilliant group of artists. When we formally launch this brand next month, each Cuban wheel of cigars will have a Fresco card that not only will provide a brief biography and vital statistics of the Las Olas roller who made the wheel, but also the "roll on" date the cigars were made. We're trying to establish a new level of intimacy with our customers and the Perdomo Fresco brand is the first of many offerings we intend to create with this in mind. I can assure you that what our cigar smokers can expect in the near future will knock their socks off!

CW: Do you see more of a demand for a quality cigar, as opposed to an "everyday" cigar?

NP: Most definitely. We make cigars with an array of price points that appeal to all cigar smokers, but I believe we have become one of the fastest growing premium cigar manufacturers in the world because of the demands we place on ourselves to produce superior, high quality cigars. From our strict growing practices, to our aging requirements, to the cigar making quality control processes we enforce and even in the packaging and shipping phase, we strive to make the perfect cigar. And it's not true that our success depends upon producing the best possible cigars we can - I believe our very survival depends upon it. It took my family a very long time and a tremendous amount of blood, sweat and tears to make it back into making cigars, and I can promise you that we will never, ever, do anything to compromise that or the integrity of my customers. And I certainly won't compromise the memory of my grandfather.

CW: What is the approximate production of your premium cigar business?

NP: Rod, we're a privately held family business, and although I'm proud of how much we've been able to control and grow our company since our last interview, I'm not at liberty to discuss those numbers in detail. But I can tell you that we are the second largest producer of premium cigars in Nicaragua - and among the largest in Central America. And I owe it all to our passionate customers, many of whom are members of CigarWeekly.com. I want to take this opportunity to sincerely thank them all, and let them know that everyone at Tabacalera Perdomo deeply appreciates their support. And I also want them to know that it's their wonderful support that constantly drives me and keeps me awake at night striving to make the best cigar possible. I just want to make cigars that are deserving of them. Period.

CW: What do you think the effect will be on the cigar business with more states passing stringent anti-smoking laws?

NP: Unfortunately, it's certainly not going to help. But we'll continue to actively fight these attempts to destroy the passion we all love and have of smoking cigars. At the moment, we're part of a class-action lawsuit to fight this ridiculous Amendment 6 in Florida, and we have also waged similar campaigns against other smoking bans in numerous cities across the country. But the part that really concerns me and makes me sad is these crazy measures will not affect cigar smoking and cigar sales as much as it will cost the livelihood of thousands of people who work everyday in establishments designed to make our passion of smoking cigars a more convenient and enjoyable experience. The hospitality, restaurant and bar industries are really going to get hammered and a lot of people are going to lose their jobs if we do nothing about it. That's the real reason I want to fight this political fad to the very end. I'm sincerely disappointed with this trend and just thinking of the fallout saddens me. But we must continue to fight these ridiculous laws by ensuring our voices are heard before these new laws are put into practice.

CW: Where you do see retail sales of premium cigars going?

NP: Sales are going up for premium cigars since last year at a slow but steady rate. I believe it will continue and I'm very confident of that. For example, Germany, Austria and other countries in the European Union have already gone through various smoking bans and other highly restrictive laws concerning the marketing and sales of premium cigars. And the market suffered briefly, then rebounded in a way where more cigars were sold than ever before. I can only speak for my company and say that we've been very blessed over the years to have struggled, survived and flourished the way we have. I firmly believe that with a superior product, innovative marketing, determined salesmanship and providing our customers with the very best smoking experience and service possible, we will continue to move forward and sustain my family's legacy.

CW: What is your strategy to compete with other niche manufactures like C.A.O. ?

NP: (laughs) Excellent question! First of all, I'll do anything in my power to promote Cano Ozgener and my good friends at CAO. As a matter of fact the Ozgener's are an extension of our family. Remember, we make their L'Anniversaire cigar lines and I am truly impressed with what the Ozgener family has accomplished in regards to their marketing and distribution efforts. But, to answer your question about competing in this business, I feel that to do so effectively we need to continue to focus on the three things we do best. Number one, continue to manufacture a superior product using only the finest quality tobaccos. Number two, innovation from both a marketing and cigar making perspective. We will slowly and very deliberately continue to introduce new and exciting products into the marketplace that everyone can identify with and enjoy. And finally, high attention to personalized service for our customers and retailers. When I'm not working in Esteli, which I am constantly, I try to go out on the road and meet as many cigar smokers and Perdomo customers as humanly possible. My wife and kids don't like it much when I'm gone, but I'm convinced it's paramount to the survival of our business and I'm happy to do it. That's why I bring my family along with me during the summer when the kids are out of school. They really enjoy meeting our wonderful customers. I know I've already met many of the very nice people here at CigarWeekly.com and I hope to meet many more of them in the near future.

CW: What is next for Tabacalera Perdomo?

NP: That's an excellent question because we're always working on something new and exciting. I'm very pleased with what we've developed so far. We are working with newer seed strains from Cuba that we've fermented to perfection that will feature new and unique flavor profiles that I personally love and I believe you will also. That is one of the exciting surprises in store for cigar enthusiasts at the next RTDA convention with regard to our production. We're also introducing programs designed to bring us closer to our customers. For example, we're getting ready to launch a new promotion where ten Perdomo customers, along with their tobacconist, will win an all expense-paid trip for a tour of our factory and farms in Nicaragua. I encourage your members to be on the lookout for how to enter the drawing. Also, our inaugural newsletter has been developed so our customers will be kept informed on all of the latest happenings at Tabacalera Perdomo. You'll be able to find the first Perdomo newsletter at your local tobacconist in February. And I want to mention here on CigarWeekly.com for the very first time about our Club Perdomo program. Club Perdomo will not only entitle Perdomo cigar smokers to outstanding price discounts on Perdomo cigars and merchandise, but also provide them with exciting monthly and quarterly specials, contests, and giveaways. We'll conduct this program in close cooperation with our tobacconists and I think it's going to be something very special. I would suggest that your members start asking their tobacconists for more information about Club Perdomo in the next month or so.

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Member Questions

sevenmag asks "I really like the Cuban Parejo's but the girth is just too big. Are there any plans for any smaller sizes in the line?"

NP: Hello sevenmag, perhaps you should try the "Corona Gigante" vitola which is a 56 ring gauge or the "Belicoso Fino" which is a 54 ring at the smoking tip. As for smaller sizes, we are planning to launch a new 52 ring gauge cigar at RTDA in September. I'm really not surprised that many cigar smokers are gravitating to larger ring gauge cigars. The larger gauges allow a significant amount of balance and diversity in the smoking experience. And like you, I really love the delicious blend on the Cuban Parejo.

DanB asks "Hypothetically, if Cuban tobacco was readily available, would Perdomo offer any cigars with Nicaraguan/Cuban tobacco blends? Specifically, what kind of tobaccos would they like to use?"

NP: Hello Dan! It's great to see you participating in the forum. I think that CigarWeekly.com and Tabacalera Perdomo have a lot in common - namely that initially we struggled a bit and now, after the dust has settled from the shakeout, we're among the very few left standing. Not many cigar manufacturers remain from five years ago, and even fewer cigar magazines and forums. It's a credit to you, Dan. You've done an outstanding job at CigarWeekly.com.

Now to answer your hypothetical question. First, we will never use one leaf of Cuban tobacco until the communist regime has been dismantled there. When that occurs, and it will happen, then yes we will blend Cuban and Nicaraguan tobaccos together to make cigars. But to get it done and done right, it's going to take a long time and let me explain why. The tobaccos grown in Cuba today are definitely not up to the standards of when my family was making cigars in Cuba. First of all, most of the soil used to grow tobacco has not been properly rotated. The soil in many of the regions where tobacco is grown have had no "rest" - "rest" meaning cycles of time where tobacco is not grown - so the soil can replenish itself with nutrients key to the growth of quality tobacco. We would have to deploy top-shelf fertilizers and re-implement soil rotations that haven't been used there in over forty years. Also, proper fermentation and aging processes would have to be implemented again. As you can see with Cuban cigars today... most are bitter, have poor combustibility and severe draw problems on the finished product - and it's all due to overproduction of cigars and Cuba's need for money. Until we can grow quality tobacco there, I'll continue to use tobaccos grown primarily on our farms in the Jalapa Valley, Condega and Esteli - whose output in quality I believe is far superior to most Cuban tobacco today.

TooTall2 asks, "I like to ask whether the really big ring size is going to be a continuing thing for Perdomo and whether a super strong smoke might be coming from them."

(Comment: I have never have been treated better than when we visited the Perdomo store in Miami. Nick wasn't there at the time, but everyone made us feel like family. You've got a great bunch of folks there Nick.)

NP: Bill, thank you for your kind and heartfelt words. I'm sorry I wasn't there to greet you personally. We really do care for our customers and I'm never happier and proud than to hear that you had a wonderful experience with us. Thank you! As far as the big ring gauge is concerned, I'm sure you're talking about Cuban Parejo. They're our hottest selling brand at the moment, and I don't see the demand slowing down anytime soon. As for super strong smokes, full-bodied cigars should also be complex and well balanced, not just strong. I believe Cuban Parejo, Perdomo Reserve, Perdomo2, and our flagship Perdomo Estate Seleccion reflect our commitment to making cigars that are not only full bodied, but rich, complex and most importantly well balanced in flavor.

Cigar Lover asks, "Which farmer group does Nick buy his tobacco from in Nicaragua and who does he buy his Ecuadorian wrapper from?"

NP: Thank you for asking Cigar Lover because not too many people know this about Tabacalera Perdomo. In the Jalapa Valley of Nicaragua, Tabacalera Perdomo grows all of its own Cuban seed tobacco for binders, filler and wrappers. We have our own agronomist, growers and warehouses located there. I absolutely love the sweet and wonderfully aromatic characters imparted by Jalapa Valley tobacco. In the Condega area, we co-op with two different tobacco farms who have grown tobacco for us for the last 5 years. Condega tobacco is known for its rich, medium-strength flavor that we use in binders as well as filler blend. And in the Esteli region, which in my opinion has the finest, most full bodied and complex filler tobaccos in the world, we buy from A.S.P. Enterprises which is owned by the Perez family. They take exceptional pride in their business and I believe they are one of the finest growers in the world of rich, high quality tobacco.

As for our Sumatra Ecuadorian wrappers, they are grown on three separate farms outside of Guayaquil and my father and I fly once a year there to select the wrappers. I'm very fond of Ecuadorian wrapper leaves. We've been using it from the very beginning and I really enjoy the spicy flavor, its earthy reddish hue and the oily sheen it lends to our cigars.

Mr. Mean asks, "Distribution on new lines. I've tried the CasaMontez and the Cuban Heirloom. I love them both as they reflect a different flavor profile. Why is it that I am not seeing these anywhere, local or online."

NP: I've been asked that quite a lot, Mr. Mean. CasaMontez is an old Cuban brand that was popular in the 1930's and early '40's and was made by Cuesta y Cia's Padre Varela factory in Havana - back when my grandfather served as an apprentice there. My family has proudly revived the brand and we have only made it available through the 100 retailers in the U.S. who are members of the Tobacconist Association of America (TAA). That's why you may have a little difficulty in finding these outstanding cigars. In the Chicago area, you should contact UpDown Tobacco for CasaMontez. You can also call our offices at 1-888-642-5797 and one of our sales representatives can find a Chicagoland account for you.

And Cuban Heirloom is a small, private label brand we manufacture for Mitchell Hirsch at Cigar King in Skokie, Illinois. Cigar King does their own distribution of the brand so you can easily drive there to see them. So you're in luck, Mr. Mean. Both brands are easily obtained locally.

Metsfan asks: "Other than the cigars you make, what cigars do you enjoy?"

NP: That's an interesting question, MetsFan, because we built the family factory in Esteli so I could make the cigars I enjoy. I'm constantly blending and searching for new tastes and unfortunately I don't get to sample that many cigars outside of our own. Besides the Perdomo brands, which I absolutely love, I do enjoy CAO's L'Anniversaire Cameroon and Maduro blends, as well as the eXtreme very much. I also like the Pre-Embargo Genuine Counterfeit Cubans that we make for JR Cigars. I also enjoy the cigars made by my good friend Ernesto Perez-Carillo.

Smoker06 asks: "His view on the advantages/disadvantages of boxpressed vs. "in the round" cigars. Is it a marketing tool or is there a different, other than aesthetic reason?"

NP: Hello Smoker06 and thank you for asking that question. Believe me, from a production standpoint it's a big advantage to make round cigars instead of box pressed cigars because round cigars take much less time to make. And when you have to boxpress each cigar, you're also going to have "breakage" primarily from damaged wrappers in the box press process. Some manufacturers are unwilling to take that labor and material risk, and I don't blame them. So, based on those reasons, if making boxpressed cigars served only as a "marketing tool" for Tabacalera Perdomo, we would no longer be making them. But we continue to do so because I absolutely love the way it looks and feels in my hand and I think it smokes just as well as a round cigar. So aesthetically, I believe it makes a statement and, as an art form, it should.

CW: Nick, thank you for spending time with us here at CigarWeekly.com One last thing, our members would like to know if you will be hosting any events in 2003? Is there a place they can go to find out about your events?

NP: Rod, thank you. It's always a pleasure to speak with you and your members and I'm looking forward to meeting as many as I can during the upcoming year. If they would like to get a schedule of Tabacalera Perdomo's upcoming events, they can simply log onto our website at www.perdomocigars.com and click on the "Upcoming Events Calendar". Again, thank you all for your kind words, your thoughtful questions and giving me the opportunity to talk about something I truly love.

CW: Thanks again to Nick Perdomo for answering our questions.